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Czech ruling coalition to lower rate of planned digital tax

The council of the current ruling coalition of the ANO party and the Social Democrats has agreed to lower the rate of the planned digital tax to 5%, reports the Czech Radio. Originally the plan was for the tax to be 7%. 

Photo by Tomasz Warszewski /

If passed by Parliament, the tax will be payed by internet companies operating with a budget of EUR 750 million or higher.

A further condition is that these companies’ annual turnover in the Czech Republic is at least as high as CZK 100 mln (EUR 3.76 mln), Czech Radio said on June 10.

The Action of Dissatisfied Citizens (ANO 2011) is a centrist populist party that is part of the liberal ALDE grouping in the European Parliament. It was founded by Andrej Babiš, the current Prime Minister. Its junior coalition partner is the the Czech Social Democratic Party (ČSSD).